Interim and final valuations

Interim and final valuations, forecasts and statements; required under most building contracts to value work in progress and at completion.

Most building contracts, and certainly all JCT contracts, set out a regime for interim and final payment to the contractor. In most cases responsibility for calculating and certifying the amount to be paid falls to the architect / contract administrator or quantity surveyor, if one is appointed.

In some cases payment is due on completion of particular work stages, for example when the foundations are complete or the walls have reached roof level; when these stages are reached an agreed payment is triggered. However, in most cases interim payments are based on the work satisfactorily completed at the valuation date; in these cases the amount to be paid has to be calculated. This is usually done by measurement and by reference to the original priced document (bill of quantities, schedule of rates, schedules of work or priced specification). Interim payments can also take account of agreed variations and materials on site. Final accounts are broadly similar and include measurement and valuation of completed and varied work; they will also take into account loss and expense claims submitted by the contractor, for example a loss claimed due to the late issue of client instructions resulting in delay to the regular progress of the works.

Apart from the payment regime the valuation may also be necessary to secure the drawdown of project funding.

Part of our role is to prepare forecasts, cash flow projections and statements of expenditure. Statements may also be prepared for taxation and accounting purposes.